Pound (GBP) Surges on Brexit Optimism
The Pound (GBP) rallied on Thursday following a meeting between Boris Johnson and Irish counterpart Leo Varadkar, after which both parties agreed they could see a ‘pathway to a possible deal’.
Meanwhile, data for August, which revealed a shock contraction in UK growth, threatened to cap demand for Sterling on Thursday, but GBP investors remained upbeat as July’s upwardly revised figures have lessened the risk of a UK recession.
In the absence of any economic data, Brexit will remain a catalyst for Pound movement on Friday, with negative developments limiting any upside in GBP exchange rates.
GBP/EUR Exchange Rate Jumps Despite ECB Minutes
The Pound Euro (GBP/EUR) exchange rate surged on Thursday, despite minutes from the European Central Bank’s (ECB) September policy meeting buoying broader trade in the single currency.
The minutes showed confused opinions between policymaker’s on the central bank’s decision to reintroduce quantitative easing, though they unanimously agreed on the need for further monetary easing.
Today’s speech by ECB Vice President Luis de Guindos will keep the spotlight on the ECB, with investors hoping for a clearer insight into the bank’s future decisions.
GBP/USD Exchange Rate Accelerates as Safe-Haven Demand Plunges
The Pound to US Dollar (GBP/USD) exchange rate roared higher yesterday as demand for the safe-haven ‘Greenback’ plunged amid signs of positive progress in US-China trade talks.
The latest US CPI figures showed inflation falling short of expectations in September, further limiting the appeal of USD and placing more pressure on the Federal Reserve for another rate cut this month.
The publication of US consumer confidence figures for October, meanwhile, is expected to weigh on the US Dollar this afternoon if household sentiment continued to deteriorate as forecast.
GBP/CAD Exchange Rate Rallies on Robust Oil Prices
The Pound to Canadian Dollar (GBP/CAD) exchange rate shot higher on Thursday, with the ‘Loonie’ finding modest support as oil prices held at more than $59 a barrel.
The publication of Canada’s latest employment report will focus attention on the Canadian economy this afternoon, with a slowdown in employment growth likely to press the Bank of Canada (BoC) to lower interest rates.
GBP/AUD Exchange Rate Gains Trimmed by US-China Trade Hopes
After soaring higher during the European session on Thursday, the Pound to Australian Dollar (GBP/AUD) exchange rate lost some ground overnight, with demand for the ‘Aussie’ bolstered by hopes that an interim US-China trade deal could be on the table.
GBP/NZD Exchange Rate Capped by Risk-On Mood
The Pound to New Zealand Dollar (GBP/NZD) exchange rate mirrored GBP/AUD movement through the last 24 hours, rising on Thursday afternoon before gains were trimmed by an upswing in market risk appetite.